Lyft (LYFT) AI Stock Analysis

• Market Cap: $5.29B
• Dividend Yield: N/A
• Average Volume (3M): 22.15M
• Price to Earnings (P/E): 242.4
• Beta (1Y): 2.33
• Revenue Growth: 31.39%
• EPS Growth: N/A
• Country: US
• Employees: 2,934
• Sector: Technology
• Sector Strength: 48
• Industry: Software
• EPS (TTM): 0.05
• Shares Outstanding: 409,477,940
• 10 Day Avg. Volume: 20,134,353
• 30 Day Avg. Volume: 22,152,401
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.91
• Price to Cash Flow (P/CF): 8.60
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $16.76
• Price Target Upside: 35.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 27

Lyft's stock score reflects a mixed financial performance with significant improvements in revenue and cash flow, but ongoing profitability challenges. The technical analysis suggests a lack of clear momentum, and a high P/E ratio indicates potential overvaluation. Positive earnings call sentiment and a share buyback program provide some optimism, but concerns over market dynamics and partnership changes remain.

Positive Factors

Financial Performance

LYFT reported a record 24.4m active riders, a 31.5% revenue growth to USD1.5bn, and a +15.6% y/y increase in Gross Bookings to USD4.1bn.

Strategic Initiatives

Lyft's strategic initiatives, including its partnership with DoorDash announced in November 2024, offer DashPass subscribers discounted rides through Lyft.

Negative Factors

Competitive Challenges

Lyft continues to grapple with significant competitive challenges in the North American rideshare market, primarily due to its limited scale and focus compared to Uber.

Partnership Challenges

The termination of LYFT's Delta Airlines partnership is expected to create a headwind to Rides and Gross Bookings growth.

Pricing Dynamics

Lower pricing dynamics are expected to weigh on Gross Bookings outlook.

Lyft Business Overview & Revenue Model

Company Description

Lyft, Inc. operates as an online social rideshare community platform. It helps commuters to share rides with friends, classmates, and co-workers going the same way. The company was founded by Marcus Cohn, John Zimmer, Rajat Suri, Matt van Horn, and Logan Green in June 2012 and is headquartered in San Francisco, CA.

How the Company Makes Money

Lyft generates revenue primarily through its ride-sharing services. The company takes a commission from each fare paid by passengers, which typically ranges from 15% to 20% of the total fare, with the remaining portion going to the driver. Additionally, Lyft earns income from ancillary services such as bike and scooter rentals, which are available in select cities. Another revenue stream includes collaborations with corporate clients, where Lyft provides transportation solutions for employees or customers. Furthermore, Lyft engages in advertising partnerships, offering promotional opportunities within its app to third-party companies. These diverse revenue streams contribute to the company's overall earnings, with ride-sharing remaining the dominant source.

Lyft Financial Statement Overview

Summary

Lyft has shown significant improvements in revenue growth, cost management, and cash flow efficiency. Revenues increased significantly, and cash flow turned positive, indicating better liquidity. However, negative EBIT and EBITDA margins reflect ongoing operational challenges. The balance sheet shows stabilization, but low return on equity highlights persistent leverage issues.

Income Statement

Lyft's revenue for 2024 showed significant growth, with a revenue increase from $4.40B in 2023 to $5.79B in 2024, marking a strong growth trajectory. The gross profit margin improved from 33.1% to 42.3%, indicating better cost management. However, despite revenue growth, the EBIT and EBITDA margins remain negative, reflecting ongoing operational challenges. Net profit turned positive at 0.39% due to better control of expenses, which is a positive indicator.

Balance Sheet

The debt-to-equity ratio improved as equity increased to $767M, reducing leverage risk. The equity ratio improved slightly, showing a healthier asset base. However, the return on equity remains low at 2.97% due to historical losses, despite the recent net income. Overall, the balance sheet shows signs of stabilization with improved equity but still faces leverage challenges.

Cash Flow

Lyft's cash flow metrics improved significantly, with free cash flow turning positive to $766M from a negative position in 2023, indicating better cash management and operational efficiency. The operating cash flow to net income ratio is strong, suggesting effective conversion of earnings into cash. Overall, the cash flow statement reflects a robust turnaround with improved liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.79B	4.40B	4.10B	3.21B	2.36B
	Gross Profit
2.45B	1.46B	1.66B	1.56B	917.16M
	EBIT
-118.91M	-475.60M	-1.46B	-1.08B	-1.81B
	EBITDA
203.16M	-188.97M	-1.40B	-841.84M	-1.61B
	Net Income Common Stockholders
22.78M	-340.32M	-1.58B	-1.01B	-1.75B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.17B	1.69B	1.80B	2.25B	2.25B
	Total Assets
5.44B	4.56B	4.56B	4.77B	4.68B
	Total Debt
567.44M	1.13B	1.03B	919.17M	959.33M
	Net Debt
-378.60M	569.70M	744.28M	461.85M	639.60M
	Total Liabilities
4.67B	4.02B	4.17B	3.38B	3.00B
	Stockholders Equity
767.02M	541.52M	388.67M	1.39B	1.68B
Cash Flow		Free Cash Flow
766.27M	-248.06M	-352.25M	-180.90M	-1.47B
	Operating Cash Flow
849.74M	-98.24M	-237.28M	-101.72M	-1.38B
	Investing Cash Flow
-517.98M	599.75M	186.04M	267.01M	740.43M
	Financing Cash Flow
-155.87M	-122.08M	-87.50M	-72.47M	512.57M

Lyft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LYFT, the sentiment is Negative. The current price of 12.36 is below the 20-day moving average (MA) of 13.37, below the 50-day MA of 13.50, and below the 200-day MA of 13.65, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 28.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LYFT.

Lyft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBER	79 Outperform	$157.22B	16.42	45.72%	―	17.96%	410.17%
BKNG	77 Outperform	$160.74B	28.37	-146.32%	0.71%	11.11%	47.03%
EXPE	72 Outperform	$24.32B	20.86	79.25%	―	6.64%	69.85%
ABNB	72 Outperform	$87.56B	34.10	31.48%	―	11.95%	-44.02%
DASH	72 Outperform	$81.25B	729.85	1.58%	―	24.17%	―
LYFT	61 Neutral	$5.29B	242.38	2.97%	―	31.39%	―
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%

Lyft Corporate Events

Lyft Announces Departure of Chief Accounting Officer

On March 3, 2025, Lyft announced the departure of its Chief Accounting Officer, Lisa Blackwood-Kapral, effective March 6, 2025. Her departure is not due to any disputes or disagreements with the company or its management. Erin Brewer, the current Chief Financial Officer, will assume the role of interim Chief Accounting Officer while continuing her duties as CFO, ensuring continuity in the company’s financial leadership.

Lyft Announces First Share Repurchase Program

On February 11, 2025, Lyft announced its first share repurchase program, authorizing the buyback of up to $500 million of Class A common stock. This move follows a record-breaking year in 2024, with Lyft achieving its highest-ever gross bookings, revenue, and rides, alongside its first full year of GAAP profitability. The company reported a significant 17% increase in annual gross bookings and a 31% rise in revenue, marking a notable financial turnaround with a net income of $22.8 million compared to a loss in 2023. These achievements reflect Lyft’s strengthened market position and operational success, further supported by improved driver preference and industry-leading service levels.